What interest rate does the Santander Inheritance ISA pay?

The Santander Inheritance ISA pays 2.45% AER variable.

How much interest could I earn?

Saving £10,000 for 1 year would earn about £245 at 2.45% AER. This assumes the rate stays the same and interest stays in the account.

When is interest paid?

Interest is paid annually (march).

Who can open this account?

New and existing Santander customers can open it. You can open it in branch.

Is my money protected?

Yes. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence.

Can I transfer an existing ISA in?

No, this ISA doesn't accept transfers in from other ISAs.

How does it compare with other cash ISAs?

At 2.45% AER it ranks 94th of 137 cash ISAs we track. The best pays 4.87% and the average is 2.98%.

Santander Inheritance ISA Review: 2.45% AER (Oct 2026)

Q: Can I withdraw my money?

Access: Restricted eligibility (Additional Permitted Subscription holders only).

Protection

FSCS£120,000

Min balance

£0

Max balance

No limit

Access

Restricted eligibility (Additional Permitted Subscription holders only)

Interest paid

Annually (March)

Transfers in

Not accepted

Santander is also paying £240 to switch your current account. Offer ends 7 October 2026.

See the switch offer

How It Stacks Up

Ranks 94th of 137

Cash ISAs we track

Well below average

This account 2.45%

UK CPI (Aug 2026): 3.10%; Pays 0.65% less
Average cash ISA: 2.98%; Pays 0.53% less
Best cash ISA: 4.87%; Pays 2.42% less

Inflation: ONS. Averages and best rates: accounts on DepositScout.

A better-paying alternative

Trading 212

Cash ISA

4.60%

AER

Pays 2.15% more than this Santander account
Includes a 1.00% bonus for 12 months, then 3.60%

Compare Cash ISAs

We may earn a commission if you open this account.

A Good Fit For

Pro: New and existing savers

Worth Weighing Up

Con: The rate is variable, so it can go down
Con: It doesn't accept transfers in from other ISAs
Con: Not flexible: money you withdraw can't be replaced without using more allowance

Please verify all details with the provider – see our Disclaimer

See all Santander accounts

Estimated returns with Santander's Cash ISA

What you could earn with Santander's Inheritance ISA.

Estimated interest

£1,000 saved

£24.50

At 2.45% AER

£5,000 saved

£122

At 2.45% AER

£10,000 saved

£245

At 2.45% AER

£50,000 saved

£1,225

At 2.45% AER

Estimated over one year, if the rate stays the same and interest is left in. Amounts outside the account's minimum or maximum aren't shown.

Santander Inheritance ISA Review

How It Stacks Up

A Good Fit For

Worth Weighing Up

Estimated returns with Santander's Cash ISA

Our Expert Opinion on Santander Inheritance ISA

2 alternatives to Santander's Inheritance ISA3 alternatives to Santander's Inheritance ISA

Common questions about the Inheritance ISA

Easy Access rate just dropped

Be the first to know when this Santander rate drops.